NL Hydro’s profits in 2025 were well down from the previous year – caused by funds used to keep electricity rates lower. The utility reported the drop in profits during its AGM in St. John’s today.
NL Hydro’s profit for 2025 was $115 million – down from $479 million reported in 2024.
In the meantime, the utility is recording a $16 million loss for the first quarter of 2026 compared to a $52 million loss reported in the first quarter of last year. Higher oil prices and greater production is being credited with the improvement.
Hydro says the premier directed the utility to take action in April of 2026 to keep electricity rates more affordable for residents by significantly reducing the electricity rate increase planned for July 1st. Hydro this week filed an application with the PUB for a general rate increase of 2.25 per cent for July of 2027.
Work on the penstock at Bay d’Espoir (NL Hydro)
In the meantime, last year also saw the completion of Hydro’s $65 million multi-year capital project on Penstock 1 at Bay d’Espoir.
Hydro also moved forward with a study to help expand the transmission of electricity to Labrador West. The first phase of the study identified a single 735 kV transmission line as the preferred solution, which will allow for a maximum power transfer limit of about 1500 MW.
